12 April 2019 : Even as WTI futures have fallen below $64/bbl at the time of writing, Oil prices remain on course for their longest run of weekly gains since 2016.

The conflict in Libya and US sanctions on Venezuela and Iran are constraining Oil supplies, even as OPEC+ producers press on with output cuts through June. Rising Oil prices will remain a welcome development for Nigeria, given how a handsome chunk of export revenues are sourced from Oil sales. Appreciating Oil prices are likely to provide foreign exchange stability, ability to implement 2019 budgets and economic growth. However, it still leaves the country vulnerable to external shocks.

With uncertainties revolving around slowing global growth potentially derailing attempts by OPEC+ to rebalance, Nigeria still needs to break away from Oil, and to derive growth from other sustainable sources.

Source: Lukman Otunuga, FXTM Research Analyst

Reporting for EasyKobo on Friday , 12 April 2019 in Lagos, Nigeria